'The issue which has swept down centuries and which will have to be fought sooner or later, is The People -v- The Banks'

Wednesday, 18 November 2015

#ALTCOIN MINING #THEWHITERABBIT RECOMMENDATION (1) #HDD

Hard drive mining

Automated transactions (Smart contracts)

Escrow transactions

Asset exchange

Read at least the start now: I know you're busy peeps! Understand what's happening to the value, of what's happening, on the HARD DRIVE part of your COMPUTER when you're NOT otherwise using it! :)

Top secrets; ALTCOIN we think should make it; why, with this altcoin? Easy: SMART CONTRACTS!!

Hard Disk Mining

Burst uses a new algorithm for Proof of HDD Capacity (POC)
mining. Miners pre-generate chunks of data known as 'plots' which are
then saved to disk. The number of plots you store is effectively your
mining speed. Every block the miner will skim through the saved plots,
and come up with an amount of time until it is able to mine a block if
another block hasn't yet been found. After reading through the plots is
complete, your hardware can idle until the next block is announced.

Why should I mine? And why BURST of all the crypto currencies?

Clear answer: Because you will earn money! BURST is like
any other crypto currency, basically another sort of money, using which
you can buy and sell things. In order to do so, you have to transfer the
money. All crypto currencies store their transfers from the beginning
of the currency into the so-called 'blockchain'. The blockchain consists
of blocks. Each block can contain several of these transfers. Users
verify the authenticity of each payment by the process called mining.

Different approaches, methods, etc. to how the mining is done
exist. For example, in Bitcoin the validity of a block is always
calculated from the beginning. This means that when a previous block has
been confirmed, every miner begins its calculations from the beginning,
all possible solutions will be computed and tried, until the solution
is found for the block. These calculations require massive CPU Power and
large amounts of electricity.

Burst is different. Burst solutions for a block will be only
computed once and are saved to your HDD during the process called
plotting. The bigger your hard drive, the more solutions can be stored
and the higher is the probability that you will find the confirmation
for the block.

Just what does it bring? If you find a block, you get a reward
in the form of a certain amount of Burstcoins, which can be exchanged in
any crypto market to fiat money. In general, exchange process is Burst
into Bitcoin and then Bitcoin to Euro or Dollar.

Burst began with 10,000 Burst reward per block found, the reward
declines by 5% roughly every month. Why the reduction? Each crypto
currency begins at block 0, the 'Genesis block' and has a certain
predefined maximum supply of money. Unlike fiat currencies such as Euro,
Dollar etc. the money supply can not be easily expanded. Theoretically,
then, depending on acceptance and use of the currency, crypto
currencies are getting more valuable compared to conventional currencies
as the money supply from conventional currencies is steadily
increasing.

After the 'last' block is mined, miners' earnings miners will
fall sharply, because then there will be no block reward issued any
more. What remains are the transaction fees which miners will continue
to receive as reward for mining blocks. How many blocks are mined so far
and how many can be mined in future? Check here:
http://burstcoin.eu/charts/mined-burstcoins

Is it worth it? Yes. Burst mining consumes almost no
electricity, when compared to other currencies, which consume more
electricity. The calculation is simple:

Investment cost of a Miner and depreciation per month for a
period of, say, three years of operation. Cost of electricity, which is
very low for burst mining. Aggregating and confront the income from the
sale of Burst. A income calculator can be found here:
http://burstcoin.eu/calculator

If you already have a computer, as I believe since you are
reading this, then you can get started right away without investment
costs. Great thing about Burst is that the mining is extremely fair and
all miners need to use a PC. Development like many other currencies
experienced, that there will be special hardware made for mining
depriving you of 'joining' as a normal user, will not happen here . With
Burst only one thing decides, how much disk space you have. Cloud
storage can not be used because your miner has to process entire plot
files within 2.5 minutes. Therefore, you can only use a PC with disks
connected through SATA or USB 3.0.

So that's enough of the theory. Check out other guides where we show you how to get started.

Miners generate and cache chunks of data known as 'plots',
which are divided into 4096 portions known as 'scoops'. Plots are
generated by taking a public address and a nonce, then hashing it,
pre-appending the resulting hash, repeating the hash-pre-append cycle
many times, and then hashing the whole thing and xor'ing the last hash
with the whole thing.lots are staggered together so chunks of the same
scoop number are together, then written to disk.Each block has a
generation signature which is derived only from the previous block's
generation signature and miner, so it is difficult to manipulate.

When mining, the scoop number to be used for a block is derived
from the generation signature and the block height, so the miner reads
all relevant scoops (each plot will have 1 relevant scoop, and
staggering allows for larger sequential read with less seeking). Only
0.024% of the stored data will need to be read each block.

The generation signature is hashed with each scoop. 8 bytes are
taken from the hash, then divided by a scaling factor (inverse
difficulty). The resulting number is a number of seconds. If that many
seconds passes since the last block without a new one, the address/nonce
combination used to generate that plot/scoop is eligible to announce a
new block. The miner's hardware can just sit idle until a new block is
announced. The address/nonce is included in the block as proof of
eligibility, and the block is signed by that address.

Technically, this mining process can be mined POW-style, however
mining it as intended will yield thousands of times the hashrate, and
your hardware will sit idle most of the time. Continuously hashing until
a block is found is unnecessary, as waiting long enough will cause any
nonce to eventually become valid.

Flow chart

The plotting part is done once for each nonce, and the results are saved to disk, and the mining reads the saved data from disk.

BURST and the Future: A Few Paragraphs of Speculation

Since Bitcoin was launched in 2009 much has happened in the
cryptocurrency community; new coins, with added features, have been
launched recently. This story is of one such currency, namely Burst. So
far Burstcoin is not only the first Proof of Capacity (POC) coin — no
clones exist today — but since its launch in mid-August 2014 the main
developer has put in immense efforts on improving Burstcoin. Often the
coin is referred to as simply BURST/Burst, as that is the handle on the
exchanges.

From the very beginning Burst was innovative and
forward-thinking in a number of ways, a trait continuing since the
launch. However, this time there we have some really big news:
Burst coin’s technological developer, in cooperation with CIYAM
developers, has been able to bring one of crypto-currencies most sought
after features. Just as Burst could announce it was the first and so far
only HDD-mining coin, we proudly announce that it has now also become
the first coin to implement Smart Contracts in a live environment.

You have probably heard of Smart Contracts. Ethereum became
lauded for planning to implement Smart Contracts. However, for over a
year now all we seen is planning and no implementation; in fact they
still do not estimate release to be ready for another several months.
Likewise, Counterparty announced they would be implementing Smart
Contracts recently, in fact they made it sound like the features were
working, but that turned not to be the whole story. Counterparty’s
attempt to combine their network with the Bitcoin network displayed
serious problems, such as what if a node fakes including a Smart
Contract into their block that isn’t approved by Counterparty but is by
Bitcoin? Conterparty does not believe they will have something to
release until March either. In the meantime you can start writing Smart
Contracts for Burstcoin today.

They enable many things to be run on the blockchain that would
otherwise have to be individually programmed in or reviewed by a core
developer and, for maximum trustlessness, every miner on the network
should review the source code. Potentially, every one of those could
have a security risk involved should some bugs get inserted into the
code.

Since more and more users discovered that Bitcoin is not
anonymous at all; quite the opposite: Transactions earlier only observed
by financial institutions, are in the Bitcoin’s blockchain fully
traceable and able to be viewed. Contents of every wallet are open for
all to see, as whom sent funds to whom. There are ways so circumvent
this, or at least make it harder to track down who owns what, but the
main problem remains.

This has led to immense activity in the
crypto-community—launching coin after coin claiming to be anonymous.
Today, probably Monero comes closest, however they are behind schedule
in development and are hard for the everyday man to use. When it comes
to Counterparty Bitcoin has been critical, while Ethereum admits they
are far behind schedule.

Has Burst, a coin without a pre-mine or IPO but with an immense
level of dedication and community support, solved this year long
struggle to be truly anonymous? It might very well be so. CIYAM, a
well-known and respected member of BitCoinTalk thinks it may be the
case. In a comment, he writes:

One member of the Burst (…) community asked me
whether AT could be used to help anonymize transfers and at first I
thought this was simply not possible as AT has *no secrets*. I am glad I
then thought about this again — and suddenly I realised that the
“atomic cross-chain transfer” (….) use case could be changed ever so
slightly to do something I had not thought that AT could ever do (help
provide anonymity). BURST has the features"